Russians Self-Assess Their Financial Literacy Level Higher

14 November 2018

Compared to last year, Russians began to rate their level of financial literacy higher. More families began to keep monthly records of expenses and incomes and to compare financial services that different organizations offered. The data comes from the All-Russian poll conducted by NAFI Research Center in September 2018.

NAFI has conducted nationwide studies of financial literacy of the Russian population since 2009. An objective assessment of the level of financial literacy is an indicator characterizing a person’s knowledge and skills in managing finances. The subjective assessment of financial literacy is a person’s personal perception of their knowledge and skills in this area.

17% of Russians gave good or excellent assessments of their financial literacy in 2018 (an increase of 5 points compared with last year). The shares of those who rated their knowledge and skills in finances as satisfactory (47%, a decrease of 3 percentage points) and unsatisfactory (36%, a decrease of 2 percentage points) remained virtually unchanged.

The respondents of 25-34 years old (21%), 35-44 years old (22%), as well as those who have higher education (27%) rated their financial literacy higher than others. Russians aged over 55 (46%) and people without higher education (42%) more often rated their financial literacy levels lower.

The dynamics of objective indicators of financial literacy compared with last year can be characterized as positive. From 2015, the share of those who do not keep records of the money spent and received gradually decreases.

Yuri Voinilov, Head of Financial Research at NAFI Research Center:

“Indicators of financial literacy over the past year showed a positive trend. We are talking about both subjective and objective assessments. On the one hand, this gives ground to optimism - the Russians not only think that they have become better versed in financial matters, but have really improved their skills in this area.

On the other hand, there are grounds for caution - probably, against the background of increasing their own confidence in financial competencies, citizens began to rely more often on keeping their personal budget “in mind” instead of formally recording income and expenses. This type of accounting is not a reliable financial planning tool and potentially carries risks for the household. Therefore, it is important that Russians' self-confidence in financial literacy does not grow into self-deception."